Natixis Advisors LLC Raises Stake in Darden Restaurants, Inc. $DRI

Key Points

• Natixis Advisors LLC increased its Darden Restaurants stake by 6.0% in the fourth quarter, adding 8,073 shares to bring its total holdings to 142,033 shares valued at about $26.1 million.
• Darden reported better-than-expected quarterly results, with EPS of $2.95 and revenue of $3.35 billion, both slightly above analyst estimates. Revenue rose 5.9% year over year, and the company’s net margin was 8.66%.
• The company continues to return cash to shareholders through a $1.50 quarterly dividend ($6.00 annualized), while analysts remain generally positive with a consensus rating of Moderate Buy and an average price target of $226.32.

Natixis Advisors LLC boosted its holdings in shares of Darden Restaurants, Inc. (NYSE:DRI - Free Report) by 6.0% in the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 142,033 shares of the restaurant operator's stock after acquiring an additional 8,073 shares during the period. Natixis Advisors LLC owned 0.12% of Darden Restaurants worth $26,137,000 at the end of the most recent reporting period.

Other large investors have also bought and sold shares of the company. Torren Management LLC purchased a new position in Darden Restaurants in the fourth quarter worth about $26,000. Thurston Springer Miller Herd & Titak Inc. raised its holdings in Darden Restaurants by 926.7% in the fourth quarter. Thurston Springer Miller Herd & Titak Inc. now owns 154 shares of the restaurant operator's stock worth $28,000 after buying an additional 139 shares during the last quarter. BOK Financial Private Wealth Inc. purchased a new position in Darden Restaurants in the fourth quarter worth about $29,000. Ameriflex Group Inc. purchased a new position in Darden Restaurants in the third quarter worth about $35,000. Finally, Wealth Watch Advisors INC purchased a new position in Darden Restaurants in the third quarter worth about $39,000. 93.64% of the stock is owned by hedge funds and other institutional investors.

Darden Restaurants Stock Performance

Shares of DRI stock opened at $193.54 on Friday. The company has a 50 day moving average price of $197.64 and a 200-day moving average price of $197.38. Darden Restaurants, Inc. has a 52 week low of $169.00 and a 52 week high of $228.27. The firm has a market capitalization of $22.17 billion, a PE ratio of 20.48, a P/E/G ratio of 1.75 and a beta of 0.60. The company has a quick ratio of 0.25, a current ratio of 0.39 and a debt-to-equity ratio of 1.02.

Darden Restaurants (NYSE:DRI - Get Free Report) last announced its quarterly earnings results on Thursday, March 19th. The restaurant operator reported $2.95 EPS for the quarter, topping analysts' consensus estimates of $2.94 by $0.01. Darden Restaurants had a net margin of 8.66% and a return on equity of 53.54%. The firm had revenue of $3.35 billion during the quarter, compared to analyst estimates of $3.33 billion. During the same period in the previous year, the business posted $2.80 earnings per share. The business's revenue for the quarter was up 5.9% on a year-over-year basis. As a group, equities research analysts expect that Darden Restaurants, Inc. will post 10.61 earnings per share for the current year.

Darden Restaurants Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, May 1st. Stockholders of record on Friday, April 10th were paid a $1.50 dividend. The ex-dividend date was Friday, April 10th. This represents a $6.00 dividend on an annualized basis and a dividend yield of 3.1%. Darden Restaurants's payout ratio is currently 63.49%.

Analyst Ratings Changes

Several research analysts have issued reports on DRI shares. Deutsche Bank Aktiengesellschaft lifted their target price on shares of Darden Restaurants from $222.00 to $230.00 and gave the stock a "buy" rating in a report on Friday, March 20th. Stephens lifted their target price on shares of Darden Restaurants from $205.00 to $210.00 and gave the stock an "equal weight" rating in a report on Friday, March 20th. KeyCorp lifted their target price on shares of Darden Restaurants from $226.00 to $228.00 and gave the stock an "overweight" rating in a report on Wednesday, May 27th. Weiss Ratings raised shares of Darden Restaurants from a "buy (b-)" rating to a "buy (b)" rating in a report on Tuesday, May 26th. Finally, Robert W. Baird lifted their target price on shares of Darden Restaurants from $208.00 to $215.00 and gave the stock a "neutral" rating in a report on Friday, March 20th. Eighteen investment analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $226.32.

Insider Buying and Selling

In related news, SVP Lindsay L. Koren sold 300 shares of the business's stock in a transaction that occurred on Tuesday, April 7th. The shares were sold at an average price of $194.32, for a total transaction of $58,296.00. Following the completion of the sale, the senior vice president directly owned 1,617 shares in the company, valued at approximately $314,215.44. The trade was a 15.65% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, SVP Douglas J. Milanes sold 3,620 shares of the business's stock in a transaction that occurred on Friday, April 17th. The shares were sold at an average price of $202.16, for a total transaction of $731,819.20. Following the sale, the senior vice president owned 274 shares of the company's stock, valued at $55,391.84. This trade represents a 92.96% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 0.49% of the company's stock.

Darden Restaurants Company Profile

Darden Restaurants, Inc is a multi-brand, full-service restaurant company headquartered in Orlando, Florida. The company owns and operates a portfolio of casual and fine-dining concepts that together serve millions of guests through company-owned and franchised locations. Its well-known brands include Olive Garden and LongHorn Steakhouse, alongside other dining concepts that span Italian, American, steakhouse and upscale casual formats.

Darden's restaurants provide a range of guest-facing services including dine-in, takeout, delivery and catering, and feature menus tailored to each brand's positioning—Italian-American fare at Olive Garden, steaks and grilled items at LongHorn, and more premium steakhouse and chef-driven offerings at its upscale concepts.

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